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NHS must use fewer temporary staff and sell land to save £10bn, says Hunt NHS must use fewer temporary staff and sell land to save £10bn, says Hunt
(about 1 hour later)
Jeremy Hunt is to tell the NHS to save £10bn a year by using fewer temporary staff and management consultants, selling off unused buildings and reducing drug errors.Jeremy Hunt is to tell the NHS to save £10bn a year by using fewer temporary staff and management consultants, selling off unused buildings and reducing drug errors.
The health secretary will warn an audience of NHS leaders on Thurday that the service must undertake a “fundamental rethink” of how it spends its £110bn budget in order to remain viable in the face of unprecedented demand for care.The health secretary will warn an audience of NHS leaders on Thurday that the service must undertake a “fundamental rethink” of how it spends its £110bn budget in order to remain viable in the face of unprecedented demand for care.
He will demand action to tackle the soaring cost of hospitals’ use of temporary staff – mainly nurses – who have been supplied by employment agencies to cover shifts in order to ensure wards are fully-staffed and patients receive good quality care.He will demand action to tackle the soaring cost of hospitals’ use of temporary staff – mainly nurses – who have been supplied by employment agencies to cover shifts in order to ensure wards are fully-staffed and patients receive good quality care.
The bill has risen by £1bn under the coalition to almost £2.5bn a year as hospitals have increasingly struggled to recruit enough staff at a time of greater scrutiny of care standards and demands to provide “safe staffing”.The bill has risen by £1bn under the coalition to almost £2.5bn a year as hospitals have increasingly struggled to recruit enough staff at a time of greater scrutiny of care standards and demands to provide “safe staffing”.
Using fewer management consultants would cut the £500m annual bill for them, while selling off some of the NHS’s estimated £7.5bn worth of surplus land and buildings could yield major savings, including £1.5bn in London alone, Hunt will claim.Using fewer management consultants would cut the £500m annual bill for them, while selling off some of the NHS’s estimated £7.5bn worth of surplus land and buildings could yield major savings, including £1.5bn in London alone, Hunt will claim.
With the NHS in England facing an expected £30bn hole in its budget by 2020/21 caused by rising demand and years of tight budgets, Hunt will tell an audience of NHS bosses at the King’s Fund thinktank that they must make up to £10bn a year in new efficiency savings by then in order to close that gap.With the NHS in England facing an expected £30bn hole in its budget by 2020/21 caused by rising demand and years of tight budgets, Hunt will tell an audience of NHS bosses at the King’s Fund thinktank that they must make up to £10bn a year in new efficiency savings by then in order to close that gap.
“If we are to be truly financially sustainable we need to rethink how we spend money in a much more fundamental way,” he will say.“If we are to be truly financially sustainable we need to rethink how we spend money in a much more fundamental way,” he will say.
The £10bn would be part of the £22bn a year in savings that NHS England chief executive Simon Stevens recently pledged the service would deliver, including by keeping patients healthier at home to avoid them going into hospital, in his NHS Forward View blueprint of how radical changes would ensure its future.The £10bn would be part of the £22bn a year in savings that NHS England chief executive Simon Stevens recently pledged the service would deliver, including by keeping patients healthier at home to avoid them going into hospital, in his NHS Forward View blueprint of how radical changes would ensure its future.
Speaking to the Guardian, Hunt said: “[Then NHS chief executive] David Nicholson came up with the ‘Nicholson Challenge’ in 2009 to save £20bn by 2015. That has more or less been delivered. We now need to have a £22bn ‘Forward View challenge’.”Speaking to the Guardian, Hunt said: “[Then NHS chief executive] David Nicholson came up with the ‘Nicholson Challenge’ in 2009 to save £20bn by 2015. That has more or less been delivered. We now need to have a £22bn ‘Forward View challenge’.”
However, while freezing staff pay and awarding them 1% pay rises has helped deliver that £20bn, Hunt said that saving the extra £10bn would have to come through innovation and greater use of technology to improve healthcare.However, while freezing staff pay and awarding them 1% pay rises has helped deliver that £20bn, Hunt said that saving the extra £10bn would have to come through innovation and greater use of technology to improve healthcare.
He will cite a scheme being used in Yorkshire where vulnerable older people can use a button to connect them to instant health advice through their television set which is claimed to have reduced emergency admissions to Airedale hospital by 14%.He will cite a scheme being used in Yorkshire where vulnerable older people can use a button to connect them to instant health advice through their television set which is claimed to have reduced emergency admissions to Airedale hospital by 14%.
Detailed proposals for IT-led efficiencies are also being set out by the National Information Board, chaired by NHS England’s national director for patients and information, Tim Kelsey. Proposals for IT-led efficiencies are also being set out by the National Information Board, chaired by NHS England’s national director for patients and information, Tim Kelsey.
It says patients will be able to see their GP records online by 2015, with all data held by hospitals, community, mental health and social care services available by 2018.It says patients will be able to see their GP records online by 2015, with all data held by hospitals, community, mental health and social care services available by 2018.
Visits to the GP and hospital, prescriptions, test results, and adverse reactions and allergies to drugs will be online – where patients will be able to record their own thoughts and preferences. Visits to the GP and hospital, prescriptions, and test results, and adverse reactions and allergies to drugs will be online – where patients will be able to record their own thoughts and preferences.
The current “red book” system of child health records will also be digitised.The current “red book” system of child health records will also be digitised.
Reducing avoidable harm could save the NHS up to £2.5bn a year, minimising mistakes in medication prescribed to patients another £551m and tackling the £150m wasted on unused drugs would also help, Hunt believes.Reducing avoidable harm could save the NHS up to £2.5bn a year, minimising mistakes in medication prescribed to patients another £551m and tackling the £150m wasted on unused drugs would also help, Hunt believes.
But Labour accused Hunt of “hypocrisy” over his cost-cutting drive.But Labour accused Hunt of “hypocrisy” over his cost-cutting drive.
“The hypocrisy of Jeremy Hunt gets worse by the day. He slashed nurse training places and left hospitals at the mercy of agencies and overseas recruitment. He should put his own house in order first,” said Andy Burnham, the shadow health secretary.“The hypocrisy of Jeremy Hunt gets worse by the day. He slashed nurse training places and left hospitals at the mercy of agencies and overseas recruitment. He should put his own house in order first,” said Andy Burnham, the shadow health secretary.
“David Cameron spent more than £1bn on pay-offs for NHS managers during the reorganisation – a scandalous waste of money when patient care is heading backwards,” he added.“David Cameron spent more than £1bn on pay-offs for NHS managers during the reorganisation – a scandalous waste of money when patient care is heading backwards,” he added.
Professor Chris Ham, chief executive of the King’s Fund, said the £10bn of savings was realistic but would take five years to deliver. “It’s good that the debate is now starting about the need to look at where efficiency savings can be made, and it’s good that the focus is on clinical care, not just back-office functions.”Professor Chris Ham, chief executive of the King’s Fund, said the £10bn of savings was realistic but would take five years to deliver. “It’s good that the debate is now starting about the need to look at where efficiency savings can be made, and it’s good that the focus is on clinical care, not just back-office functions.”
Hunt said he was “concerned” about over-testing, over-diagnosis and over-treatment of some patients, including overuse of medication. “I’m not a doctor but there’s evidence that while certain types of people are likely to improve as a result of having orthopaedic surgery such as a new hip or knee, there are cases where treatment does not make things better.”Hunt said he was “concerned” about over-testing, over-diagnosis and over-treatment of some patients, including overuse of medication. “I’m not a doctor but there’s evidence that while certain types of people are likely to improve as a result of having orthopaedic surgery such as a new hip or knee, there are cases where treatment does not make things better.”
The Academy of Medical Royal Colleges, which represents the UK’s 250,000 doctors, last week said over-medicalisation was costing the NHS about £2bn.The Academy of Medical Royal Colleges, which represents the UK’s 250,000 doctors, last week said over-medicalisation was costing the NHS about £2bn.
Asked if he backed health minister Norman Lamb’s call this week for the NHS to receive an extra £1.5bn, Hunt replied: “I wouldn’t have used those words, but I’m very aware of the financial pressures.” Pressure is building on George Osborne to find more money for the NHS in his spending statement on 3 December.Asked if he backed health minister Norman Lamb’s call this week for the NHS to receive an extra £1.5bn, Hunt replied: “I wouldn’t have used those words, but I’m very aware of the financial pressures.” Pressure is building on George Osborne to find more money for the NHS in his spending statement on 3 December.
Chris Hopson, chief executive of the Foundation Trust Network, which represents hospitals, said: “In the next parliament politicians need to do their bit and find extra money, and the NHS needs to do its bit by maximising the amount of savings we find.” But genuine transformation in the way care is delivered was needed to achieve the £22bn target, he added.Chris Hopson, chief executive of the Foundation Trust Network, which represents hospitals, said: “In the next parliament politicians need to do their bit and find extra money, and the NHS needs to do its bit by maximising the amount of savings we find.” But genuine transformation in the way care is delivered was needed to achieve the £22bn target, he added.